AutoNation Inc. said it appointed the former head of Fiat Chrysler as its next chief executive, tapping an auto-industry veteran to steer the nation’s largest publicly traded car-dealership chain out of the pandemic.

The Fort Lauderdale, Fla.-based company said Tuesday that Mike Manley, currently head of Americas for Stellantis NV, would assume his new role on Nov. 1, succeeding Mike Jackson. Mr. Jackson will retire on the same day after leading AutoNation for over two decades, during which he stood out in a tight-lipped industry...

AutoNation Inc. said it appointed the former head of Fiat Chrysler as its next chief executive, tapping an auto-industry veteran to steer the nation’s largest publicly traded car-dealership chain out of the pandemic.

The Fort Lauderdale, Fla.-based company said Tuesday that Mike Manley, currently head of Americas for Stellantis NV, would assume his new role on Nov. 1, succeeding Mike Jackson. Mr. Jackson will retire on the same day after leading AutoNation for over two decades, during which he stood out in a tight-lipped industry for his outspoken personality and willingness to challenge auto makers publicly.

Mr. Manley will take over at AutoNation as the U.S. dealership model is under pressure. Lockdowns related to Covid-19 have prompted more customers to look at cars online and complete the purchase of vehicles remotely, accelerating a shift to digital sales that started before the pandemic.

AutoNation stock was up about 2% in morning trading Tuesday.

Mr. Jackson’s retirement from AutoNation has been expected for some time. He first decided to step down as CEO in 2019, tapping an auto-industry outsider for the top position. But his replacement resigned just months after taking the job.

The next CEO, longtime AutoNation executive Cheryl Miller, stepped down for medical reasons at the onset of the pandemic and Mr. Jackson returned to the top job. In occupying the post last year, he promised to navigate the company through the pandemic and avoid more turnover at the top. The board had extended his contract through spring of 2022.

Like other large dealership chains, AutoNation is undergoing an expansion to support a move to more digital sales. The company plans to open 130 used-car stores nationwide by 2026, which it intends to operate more like delivery centers, where customers pick up cars purchased online, Mr. Jackson has said.

AutoNation has also been grappling with a shortage of vehicles this year as a lack of semiconductor chips hampers new-vehicle production. While sales volumes have been lower, profit per vehicle has soared as demand outpaces supply and customers are willing to pay top dollar to get the vehicles they want.

In the second quarter, AutoNation reported record earnings per share of $4.83 and gross profit per vehicle of $2,342, the highest ever for the dealership chain. Mr. Jackson has long advocated for the auto industry to operate on smaller inventories, and has said he hopes car companies don’t return to pre-pandemic production levels.

AutoNation Chairman Rick Burdick said Tuesday that hiring Mr. Manley would bring comprehensive auto experience to the company, which owns and operates over 300 locations across the U.S.

Mr. Manley, a 57-year-old Brit, played a central role in negotiating the merger of Fiat Chrysler and Group PSA to create Stellantis, the auto industry’s biggest tie-up in decades. His experience with the U.S. market in particular was considered key to making the combination a success.

The executive had long been a fixture in Fiat Chrysler’s top ranks, having run Jeep—one of its most popular brands—and as a key lieutenant of predecessor Sergio Marchionne, who rescued Chrysler from bankruptcy and combined it with Italy’s Fiat SpA.

In mid-2018, Mr. Manley was thrust into the top job at Fiat Chrysler days before the sudden death of Mr. Marchionne.

During his 2½ years as CEO, Mr. Manley helped elevate the profile of the company’s Ram truck brand and continued to grow Jeep globally. Its North American operations posted some of its biggest profits in years under his leadership, as well as boosting operating margins.

At Stellantis, Mark Stewart, the company’s chief operating officer for North America, and Antonio Filosa, operating chief for Latin America, will now report directly to Chief Executive Carlos Tavares.

Write to Nick Kostov at Nick.Kostov@wsj.com and Nora Naughton at Nora.Naughton@wsj.com